Merck & Company Inc (MRK)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,877,000	7,435,000	5,398,000	15,218,000	16,436,000	16,767,000	18,451,000	16,017,000	14,570,000	8,702,000	6,761,000	8,111,000	8,532,000	13,219,000	12,239,000	12,126,000	11,408,000	11,399,000	11,715,000	10,507,000
Revenue (ttm)	US$ in thousands	60,114,000	59,314,000	58,311,000	57,869,000	59,283,000	58,974,000	57,169,000	53,978,000	48,704,000	46,131,000	43,906,000	41,857,000	43,287,000	36,488,000	37,956,000	40,363,000	39,122,000	45,971,000	44,368,000	43,073,000
Pretax margin		3.12%	12.53%	9.26%	26.30%	27.72%	28.43%	32.27%	29.67%	29.92%	18.86%	15.40%	19.38%	19.71%	36.23%	32.25%	30.04%	29.16%	24.80%	26.40%	24.39%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,877,000K ÷ $60,114,000K
= 3.12%

The pretax margin of Merck & Co Inc has fluctuated over the past few quarters, ranging from 3.14% in Q4 2023 to 32.39% in Q2 2022. This metric measures the company's efficiency in generating profits before taxes relative to its total revenue. The significant decrease in pretax margin from Q4 2022 to Q1 2023, dropping from 27.74% to 26.32%, may indicate a decrease in profitability or potentially higher operating expenses. However, there was a notable increase in Q3 2023 with a pretax margin of 12.56%, showcasing a potential improvement in profitability. It is essential to further investigate the factors contributing to these fluctuations to gain a better understanding of Merck & Co Inc's financial performance.